Alphabet Launches $15 Billion Bond Sale, Eyes Century Bond

This article first appeared on GuruFocus.

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) shares traded 0.80% lower to $325.70 intraday as the company launched a seven-part bond offering totaling $15 billion. The sale might include a rare 100-year century bond denominated in sterling, placing Alphabet among a small group of issuers willing to lock in financing across multiple business cycles.

The US dollar deal spans multiple maturities, with the longest tranche maturing in 2066. Initial price discussions for that portion are around 120 basis points over US Treasuries, according to people familiar with the matter. Shorter-dated tranches make up the remainder of the sale, giving Alphabet flexibility across its maturity profile.

In addition, the company has mandated banks for potential Swiss franc and sterling bond offerings, which could also include a rare 100-year note, Bloomberg reported.

The capital raise is a direct response to Alphabet’s ballooning capital expenditure requirements. The company recently projected 2026 capital spending of $175 billion to $185 billion, largely driven by the build-out of high-density data centers supporting its Gemini AI ecosystem.

Alphabet’s move follows a broader trend among technology firms tapping bond markets to pre-fund long-term investment. Oracle (NYSE:ORCL) raised $18 billion in new debt last September, while Meta (NASDAQ:META) issued $30 billion in October, one of the largest high-grade corporate bond sales of the year.